The trading trend of penny stocks is quite volatile, and many view them as speculative investments. Investments in penny stocks are generally made by investors hoping for the stock trend to change to their advantage.
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While finding safe stocks with the potential for monster gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Cheap Stock to Own Right Now", we have identified five stocks we believe could appreciate the most even if you just have $1,000 to invest.
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For investors to make informed decisions, we provide them with basic information from research about relevant investments.
Investing in penny stocks burns a lot of money due to their volatility. Knowing how penny stocks fluctuate will help you avoid losing money. Due to the pump and dump nature of penny stocks, they also lose money due to poorly made decisions.
Penny stocks may be the same profitable investments as Fortune 500 companies if you learn the right metrics, fundamentals, and developments about them.
Sundial Growers Inc. (NASDAQ: SNDL)
The first penny stock under $1 is Sundial Growers, ticker SNDL. Sundial stock is traded on NASDAQ. As well as distributing inhalable products, Sundial Growers produces, markets, and sells cannabis primarily for adult use.
We selected Sundial because it is experiencing strong growth in the cannabis market. In spite of the pandemic shut down in 2020, the value of SNDL shares has nearly doubled. According to a report by The Brightfield Group, hemp CBD’s market will reach $16 billion by 2025.
The nutraceutical industry is predicted to grow to about $100 billion in the U.S. in 2022, which is good news for Sundial’s expansion and growth. Due to the simple fact that the Federal government hasn’t yet passed a law legalizing cannabis in the United States, the US cannabis market will still remain far from its full potential. Having that happen will open up the cannabis industry to expand. A successful bill will bring cannabis to the US market from Canada and Europe. Over the last 90 days, SNDL has generated more than 190 million units, making it highly liquid. SNDL has acquired more than 30 retail chains in Canada by virtue of its acquisitions.
With a year-to-date performance of 68%, SNDL has outperformed CGC and CRON, with no upcoming acquisitions in the US market.
Therefore, SNDL is a promising cannabis stock because of the high performance of the company and the market growth prospects.
Inuvo Inc. (NYSE: INUV)
Inuvo Inc. (INUV) is our next penny stock pick. A leading advertising agency is leveraging artificial intelligence to refine its commercialization process. Inuvo’s newest product might be revolutionary considering the upcoming digital marketing trends.
Its patented artificial intelligence-based commerce solution is called IntentKey. It can be attributed to IntentKey (INTENT-ED) that the company achieved success as a penny stock and beyond.
In addition to helping the company reach a global audience, partnering with Google and Vertro generates high-quality marketing leads. This will be accomplished by utilizing Google’s WebSearch and AdSense For Search services.
Several indicators point to good growth for the company. As of the second quarter of 2021, INUV has gained 100% in 2021 – with a year-over-year revenue increase of 63%. There is a 94.9-million-dollar market capitalization for this company, and its price-to-sales ratio is 2.35. Using the $17.8 million cash on hand, Inuvo can capture the market even further.
We live in a digital age, and software solutions like INUV are defining tools for the digital world of today.
Both our under $1 penny stocks are listed on either NASDAQ or NYSE. There are a lot of penny stocks that are traded over the counter and on the grey market. The majority of traders and analysts favor penny stocks traded on NYSE and NASDAQ.
Comparatively, to OTC, Pink Sheet, or Grey Market exchanges, the rules and requirements of the Nasdaq and NYSE are more stringent when it comes to company and stock information. As penny stocks are largely unknown, it is believed it is possible to reduce volatility by choosing reliable exchanges.